Why PRICE Matters Most

Pricing RIGHT, right away!

Get inspired, Michiana! Are you or someone you know planning to list a home for sale this spring? Original list price matters more than you can imagine. That’s the price the seller decides to ask for the house on the very first day it hits the market.

     Statistics show why it’s best to get that right, immediately. More than half of all homes on market start out at a reasonable price, within 4% of where they end when sold. Those that begin at a higher price, thinking they will get lower offers, never get offers in the first week or two. Buyers presume the seller won’t come down until they’ve been on market a while. And once the house has lingered on the market more than two weeks, four weeks, eight weeks, buyers now wonder, “What’s wrong with this one?” The answer is, “Nothing, except it was priced too high to start.”

   Now, because the house was too high, and sat for too long, the offers that do come in, fall below where the home should have sold, based on accurate market data, property condition, and current competition. For homes listed 9-11% above market price, sales take 19-87 days, and the longer it takes, the lower the price, compared to where it should have been.

     When sellers trust their experienced Inspired agents to recommend an accurate list price, the story is much better! While no two homes are alike, your Inspired agent will research homes in close proximity, with the most similar size, features, upgrades, and overall condition. Next, what other options does the buyer have currently on market? When more choices are offered, your price may need to be adjusted to reflect your urgency to sell.

     Ask for something called an “aging report” which shows a potential realistic time on market for your home. In addition to all those other factors for the “comps” (size, condition, etc.), the amount of homes currently for sale will significantly affect what your final selling price will be.

 As always, thanks for your generous business, referrals and prayers. Remember, at Inspired, it's all about YOU! 

Here are some great links for more information on this topic:

How to Improve the Odds of an Offer

When Home Sellers Set Prices Too High, They’re Paying for It

The Price is Right: How does listing price affect days on market?